by Frank James
Steve Ellis of Taxpayers' for Common Sense has gotten a copy of the auto bailout legislation resulting from negotiations between Congress and the White House. Here's what his quick early take:
We just got it and are looking through it, but here is what we found so far:
It taps the existing $25 billion auto loan guarantee program created under the Energy bill. It also has a repayment structure (5 percent for 5 years, 9 percent after) similar to the bank investments under TARP. The starting point is the restructuring plans submitted by the companies on December 2, with a January 1 progress assessment due. Shorter term periodic reports are due upon release of the loans, every several days.
It also creates a so-called "Car Czar" (less colorfully called the "President's designee") within the Executive Branch (that serves at the pleasure of the President, so President-elect Obama can have who he wants upon taking office) that watches over car companies that have taken the loans and can void "sale, investment, contracts, commitment, or other transaction" that exceed $25,000,000. The Czar also sets executive compensation and corporate governance standards for the companies. The GAO and the TARP IG will oversee the work of the Czar and have access to the companies books.
We will let you know more as we read more.
Comments
Hope this makes the unions happy-
Not the taxpayers for sure-
Posted by: Inky | December 8, 2008 5:06 PM
Hope this makes the pugs happy-
Not the dems for sure-
Looks like the greasy pugs managed to thwart fuel efficient standards yet again.
Posted by: Xcellentform | December 8, 2008 7:03 PM
But the deal only allocates $15 billion for the Big Three. That's not even half of what they asked for. Is that really enough to do anything more than keep the lights on for another 1-2 months? Some compromise for the Dems...
http://www.political-buzz.com/
Posted by: matt | December 8, 2008 7:17 PM
"The Czar also sets executive compensation and corporate governance standards for the companies!"
Well, I guess no lip-stick will disguise this pig.
Posted by: Barney Frank, Car Czar? | December 8, 2008 9:05 PM
Yes Matt....that's what I initially thought too, but I imagine that the wording is getting written so that this "bridge loan" is just enough to bridge the month while the pugs are still in control, and the dems will revisit this in a month or so.
Posted by: Xcellentform | December 8, 2008 9:50 PM
Don't be surprized if Lee Iacocca surfaces at "auto czar" (car czar?).
Meanwhile this is just the beginning: to follow is the plan to provide "liquidity" so consumers can purchase new cars (which they apparently cannot do now).
This bill only "pays the creditors" for awhile; it does nothing to provide liquidity for consumers to buy cars, does it?
One good thing about the impending Inauguration:
It will get rid of Kash & Karry. If he uses the word "tranche" one more time, I'm going to be ill.
Posted by: ornery | December 8, 2008 10:22 PM
“If there is a real desire to get this thing done and prevent adding another disaster to our economic situation, we should have it,” Representative Barney Frank.
.
I hope he does another bang-up job like he did with Freddie Mac & Fannie Mae.
.
July 14, 2008 - Pearls of Wisdom from Brothel Barney: "I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound. They're not in danger of going under. They're not the best investment these days from a long term standpoint going back. I think they are in good shape going forward. They're in the housing market. I do think their prospects going forward are very solid."
.
Good Call Brothel Barney - and heck he was one of the primary causes for thsi meltdown.
Posted by: Terry | December 8, 2008 10:33 PM
For the record, the only taxes inky has paid in his 19 years of existence has been for the Britney Spears CD's that he buys.
Posted by: Xcellentform | December 8, 2008 10:51 PM
"Car Czar" -- Here we go growing the government again...how many under-car-czars and secretaries does it take to make the auto industry go away?
Posted by: lochnessmonster | December 9, 2008 7:07 AM